Sunday, November 2, 2014

First time home buyer program - Maine State Housing Authority - By Matthew Trudel

The Maine State Housing Authority, or MESHA, is now offering lower interest rates with higher income limits and higher purchase price limits. They may be the right option for you if you are getting ready to purchase a home. If you already owned a home or do own a house or income property, you may still qualify so keep reading. Many banks and lenders are offering interest rates around 4 percent, while MESHA rates are as low as 3.25 percent, but first things first, do you qualify?

To qualify for MESHA First Time Home Buyer Program you can not have lived in a property as your primary residence for the last three years that you have had any ownership in. You can own an investment property, a camp, lake house, or another home. You just can not have lived in it as your primary residence for the past three years. 

Wait! You do own your primary residence, that's okay if you are a Veteran or on Active Duty (you just have to sell your home prior to closing on your new home). Owners of unattached mobile homes on leased land also still qualify. If you meet those conditions, you must also meet the income guidelines, which for most of the Greater Portland, Windham, Raymond, Standish, and Casco areas are $77,300 for one or two people and $88,900 for three or more people. Purchase price limit for single family home is $275,000.

Some great advantages to a MaineHousing mortgage is payment protection for unemployment, little or no down payment, closing cost assistance, very low fixed rates, and home improvements can be included in the loan amount. 

Wait a minute you say, wondering about that Federal Recapture Tax that we always hear sellers that used MaineHousing in their purchase say they worried about paying if they sell their home. Not to worry. A large majority of MaineHousing borrowers pay little or no federal recapture tax. If a MaineHousing loan was or is closed on or after January 1, 2013, and a seller owes and pays any federal recapture tax to the IRS, MaineHousing will reimburse them in full. 

MaineHousing has made a lot of changes over the past couple years and they are offering a very competitive program that will meet the needs of many home buyers. From FHA to VA loans, Rural Developement loans, their rates are very good. The minimum FICO score is 640 and can be a little lower with some possible exceptions given for special circumstances. Call a local realtor who is current with recent changes that MESHA has made and see if you qualify.

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